Amber Road invites you to attend their upcoming FREE webinar, Export Control Reform Update: Preparing for Transition, broadcasting live on Tuesday, April 23 at 2PM EDT. President Obama’s Export Control Reform (ECR) initiative is well under way, with significant changes anticipated over the coming months. This webinar will focus on the Administration’s recent progress on [...]
Amber Road invites you to attend their upcoming FREE webinar, Export Control Reform Update: Preparing for Transition, broadcasting live on Tuesday, April 23 at 2PM EDT.
President Obama’s Export Control Reform (ECR) initiative is well under way, with significant changes anticipated over the coming months. This webinar will focus on the Administration’s recent progress on ECR, what the industry can expect in the near term, and how to prepare for these and future changes. Key topics will include:
• The benefits of the anticipated changes and how the U.S. government is preparing for implementation
• The transition from proposed to final rules and the expected schedule for publication
• How exporters can stay up-to-date and plan for the transition
• Other potential improvements in the Export Administration Regulations
Hosted by American Shipper, this webinar is a must attend for U.S. exporters.
Click here to register now.
The Office of the U.S. Trade Representative is gathering public input on the proposed Transatlantic Trade and Investment Partnership agreement with the European Union, including U.S. interests and priorities, to help it develop U.S. negotiating positions. Written comments are due no later than May 10 and a hearing will be held May 29-30 in Washington, [...]
The Office of the U.S. Trade Representative is gathering public input on the proposed Transatlantic Trade and Investment Partnership agreement with the European Union, including U.S. interests and priorities, to help it develop U.S. negotiating positions. Written comments are due no later than May 10 and a hearing will be held May 29-30 in Washington, D.C. USTR has also asked the International Trade Commission to evaluate the probable economic effects of the TTIP, and an announcement on the initiation of that investigation is expected soon.
Comments submitted to USTR may address the reduction or elimination of tariffs or non-tariff barriers on any articles provided for in the Harmonized Tariff Schedule of the United States that are products of the EU, any concession that should be sought by the U.S. or any other matter relevant to the proposed agreement. Continue reading »
First annual progress reports issued on the Beyond the Border and Regulatory Cooperation Council Action Plans Prime Minister Stephen Harper and Barack Obama, President of the United States, today welcomed the release of the first annual Beyond the Border Action Plan Implementation Report and the Canada-United States Regulatory Cooperation Council (RCC) Joint Action Plan Progress [...]
First annual progress reports issued on the Beyond the Border and Regulatory Cooperation Council Action Plans
Prime Minister Stephen Harper and Barack Obama, President of the United States, today welcomed the release of the first annual Beyond the Border Action Plan Implementation Report and the Canada-United States Regulatory Cooperation Council (RCC) Joint Action Plan Progress Report, which demonstrate progress made by Canada and the United States on perimeter security and economic competitiveness.
“Today’s reports demonstrate real and substantive progress on improving the management of our shared border and improving regulatory cooperation, both of which will improve the flow of people and goods between our countries,” said the Prime Minister. “The Beyond the Border and the Regulatory Cooperation Council Action Plans are laying the foundation for more jobs and growth in Canada and the United States by making it easier for firms in both countries to do business.”
The Beyond the Border and RCC Action Plans, announced by both leaders on December 7, 2011, set out ambitious milestones designed to advance economic opportunity, improve regulatory cooperation and enhance security between our two countries. Since then, significant progress has been made, including modernizing our joint border management, the development of the first joint Border Infrastructure Investment Plan, the release of a joint Cybersecurity Action Plan, improvements to the NEXUS trusted traveller program, mutual recognition of our air cargo security programs, and the development of joint standards and greater alignment of regulatory systems.
As the action plans continue to be implemented, the Government of Canada will keep Canadians informed of progress, including through the issuing of progress reports.
Both reports are available here.
For nearly 80 years, dating back to the Depression-era Buy America Act of 1933, the U.S. government has had protectionist domestic sourcing – or “Buy America” – laws on the books to create jobs, maximize the use of American-made products and ensure that federal tax dollars are reinvested in the U.S. economy. To support the [...]
For nearly 80 years, dating back to the Depression-era Buy America Act of 1933, the U.S. government has had protectionist domestic sourcing – or “Buy America” – laws on the books to create jobs, maximize the use of American-made products and ensure that federal tax dollars are reinvested in the U.S. economy. To support the country’s national security capabilities, “Buy America” laws were expanded in the 1940s to apply to defence spending. In the early 1980s, President Ronald Reagan signed into law a further expansion of “Buy America” for highway and mass transit projects that are funded by federal grants.
As one of his first domestic initiatives, in 2009, President Barack Obama signed the American Recovery and Reinvestment Act (“Recovery Act”), a sweeping $787-billion plan aimed at stimulating a devastated economy still reeling from the catastrophic meltdown of the real estate and financial markets the previous year.
The Recovery Act contained a controversial “Buy America” provision that required all iron, steel and manufactured goods used in construction projects receiving stimulus funding to be produced in the United States. This significantly expanded on existing U.S. legislation stipulating domestic preference criteria by widening the scope of products covered to include “all manufactured goods” with respect to any project funded by the Recovery Act.
Pressured by Canadian exporters complaining that the latest “Buy America” measures violated market access exemptions under the North American Free Trade Agreement and were therefore unfairly costing them business and jobs, the Harper government entered into negotiations with the Obama administration that eventually reached a procurement agreement in early 2010 which provided limited relief and access to some Recovery Act projects for Canadian goods. Key to the accord was persuading the Canadian provinces and territories to finally open up their procurement markets to U.S. suppliers by signing onto the WTO’s Government Procurement Agreement (GPA); a multilateral arrangement mandating that member countries provide reciprocal access to federal procurement projects and, in some cases, at the sub-federal level (i.e. states, provinces and cities).
Although the protracted dispute over the “Buy America” provisions effectively scuttled bidding access for Canadian exporters to most Recovery Act projects – funding having already been allocated by the time waivers pursuant to the Canada-US Procurement Agreement were finalized – it was widely assumed at the time that the bilateral accord and new commitments made under the WTO GPA had largely resolved the nettlesome issue of government procurement going forward.
Evidently not. In October 2011, President Obama proposed the American Jobs Act, a massive spending bill designed to inject billions of federal dollars into infrastructure projects such as the renovation of schools, the construction of roads and bridges and improving transit. Much to the surprise and frustration of the Canadian government and trade community the new bill included the exact same “Buy America” constraints of 2009’s Recovery Act. Continue reading »
The Office of the Intellectual Property Enforcement Coordinator has released its 2012 Annual Report on Intellectual Property Enforcement asserting that the federal government has made “great strides” over the past 18 months in implementing the 33 action items set forth in the Joint Strategic Plan of 2010. The report states that there has been greater coordination [...]
The Office of the Intellectual Property Enforcement Coordinator has released its 2012 Annual Report on Intellectual Property Enforcement asserting that the federal government has made “great strides” over the past 18 months in implementing the 33 action items set forth in the Joint Strategic Plan of 2010.
The report states that there has been greater coordination among government agencies on IPR enforcement efforts such as securing supply chains, pursuing sources of counterfeit and pirated goods, and meeting the challenges posed by emerging criminal trends such as online sales of counterfeit pharmaceuticals, economic espionage and targeted theft of trade secrets. Specific items of note include the following.
- An interagency working group is in the process of finalizing a strategy to ensure that the U.S. government does not purchase and use counterfeit or pirated goods. This group is examining existing tools as well as the need for new tools to maintain the integrity of the federal supply chain.
- IPEC intends to encourage trading partners to take steps similar to 
those taken in the U.S. to develop voluntary agreements that will result in reducing infringement in international and domestic supply chains.
- Keeping in mind that voluntary agreements and best practices can also be effective tools to address infringement in the physical world, over the next year IPEC and other federal agencies will work with companies from a range of sectors on voluntary means to keep global supply chains free of pirated and counterfeit goods and reduce the risk of theft of trade secrets.
- The FBI increased its number of new trade secret investigations by 29% and its number of health and safety investigations by 87% in fiscal year 2011. The number of prison sentences of 60+ months and 37-60 months doubled and tripled, respectively.
- FY 2011 marked the first time that U S embassies in 17 key countries – China, Brazil, India, Russia, Thailand, Canada, Chile, Egypt, Colombia, Mexico, Ukraine, Spain, Saudi Arabia, Israel, Peru, Turkey and Nigeria – each had a formal interagency team of U.S. government personnel stationed there to help improve the host country’s protection and enforcement of intellectual property rights.
- The U.S. government is for the first time conducting an economic analysis to identify the industries that most intensively produce intellectual property and measure the importance of those industries to the U.S. economy. IPEC believes that improved measurement of intellectual property linked to measurements of economic performance will help the government understand the role and breadth of intellectual property in the U.S. economy and will inform policy and resource decisions related to IPR enforcement.
Source: STR Trade Report
On March 6, President Obama signed a proclamation to implement the U.S.-Korea Free Trade Agreement, paving the way for increased trade between the United States and South Korea. The proclamation follows congressional approval of the free-trade accord on October 13, 2011. The two nations have agreed to put the FTA into effect as of next [...]
On March 6, President Obama signed a proclamation to implement the U.S.-Korea Free Trade Agreement, paving the way for increased trade between the United States and South Korea. The proclamation follows congressional approval of the free-trade accord on October 13, 2011. The two nations have agreed to put the FTA into effect as of next Thursday.
This proclamation amends the Harmonized Tariff Schedule of the U.S. to implement the preferential tariff treatment of goods imported from Korea under the terms of the FTA and specify rules of origin under which such treatment may be granted. It also authorizes the Committee for the Implementation of Textile Agreements to determine when fabrics, yarns or fibers are short supply (thus permitting preferential tariff treatment for imports of textile and apparel goods made with such inputs sourced other than in the U.S. or Korea) and to implement safeguards and enforcement actions on textile and apparel imports from Korea.
South Korean President Lee Myung-bak, addressing Korean news agencies in December 2011, said: “The accord is significant because it lays the groundwork for a ‘win-win’ relationship by reflecting the national interests of Korea and the United States in a balanced manner.”
Extending the re-validation cycle for companies in the Customs-Trade Partnership Against Terrorism by a year will not adversely impact supply chain security, according to Shawn Beddows, the U.S. Customs official directly in charge of the program. The Obama administration’s budget plan for fiscal year 2013 calls for a $5 million reduction in C-TPAT spending, with [...]
Extending the re-validation cycle for companies in the Customs-Trade Partnership Against Terrorism by a year will not adversely impact supply chain security, according to Shawn Beddows, the U.S. Customs official directly in charge of the program.
The Obama administration’s budget plan for fiscal year 2013 calls for a $5 million reduction in C-TPAT spending, with the money diverted instead to pay for frontline inspection operations. Most of the savings are to be achieved by scheduling follow-on verifications of trusted shippers’ supply chain security practices every four years, instead of three. […]
Another possible change to C-TPAT is the addition of an export component. CBP officials, acquiescing to private sector demands for a program that would make it easier to comply with the cargo security programs of foreign governments, in recent months have said they are contemplating a security program for exporters.
Customs is expected to consider several approaches for export verification, including flipping the C-TPAT import criteria to exports or using a security checklist that is equivalent to ones used by European Union governments for their Authorized Economic Operator programs. Read more here (subscription required).
Source: Eric Kulisch — American Shipper Magazine
The blueprint for the fiscal 2013 budget released today by the Obama administration provides $39.5 billion for the Department of Homeland Security, a decrease of 5.4 percent or $191 million to be achieved through cuts in administrative costs and the elimination of duplicative programs. Funds and staffing at the northern and southern borders and the [...]
The blueprint for the fiscal 2013 budget released today by the Obama administration provides $39.5 billion for the Department of Homeland Security, a decrease of 5.4 percent or $191 million to be achieved through cuts in administrative costs and the elimination of duplicative programs.
Funds and staffing at the northern and southern borders and the ports of entries would remain the same under the budget, however proposed outlays for the CBP’s Automation Modernization account – which includes the Automated Commercial Environment (ACE) and Critical Operations Protection and Processing Support (COPPS) would decrease by $82 million to $309 million.
The proposed budget would fund cyber-security efforts by providing $769 million to improve security of federal civilian information technology networks while enhancing outreach to state and local governments and critical infrastructure sectors. It slated $650 million to fund research and development advances in cyber-security, explosives detection, and chemical/biological response systems.
As part of a 15.6 percent increase to the Department of Commerce budget, the president is calling for spending $517 million on the International Trade Administration to promote U.S. exports in key markets abroad and to improve trade enforcement. The administration would also increase funds for the U.S. Patent and Trademark Office to accelerate patent processing and improve patent quality.
The administration is proposing a $100 departure fee for airlines, business jets and other aircraft to help cover the costs of federal air traffic control. The new fee would raise $7.4 billion over 10 years, the administration estimates. The budget also proposes to cut guaranteed grant funding for medium and large airports by $926 million in 2013 to $2.4 billion. Instead, airports would be permitted flexibility to increase certain ticket charges to raise revenue on their own for airport construction projects.
Obama’s proposed transportation budget includes a six-year, $476-billion surface transportation bill, a significant reduction from the bill the president proposed last year, but an amount still far exceeding the spending called for under transportation bills in the House and Senate, where lawmakers have struggled to find money to pay for highway and transit projects. The House bill would spend $260 billion over 4½ years; the Senate $109 billion over less than two years.
Detailed financial information on individual programs and appropriation accounts from the Office of Management and Budget can be obtained here.
Administrative reform is needed but may result in troubling consequences for free traders Last week, President Obama announced plans to consolidate six federal agencies related to business and trade into a single agency in order to improve efficiency and the international competitiveness of American companies. Writing in the New York Times “Economix” blog, former Reagan [...]
Administrative reform is needed but may result in troubling consequences for free traders
Last week, President Obama announced plans to consolidate six federal agencies related to business and trade into a single agency in order to improve efficiency and the international competitiveness of American companies.
Writing in the New York Times “Economix” blog, former Reagan and Bush economic policy advisor Bruce Bartlett outlined The Pros and Cons of Obama’s Reorganization Plan – a dubious title given the only “pro” in the article appears to be that it would necessitate elimination of the Small Business Administration, something that conservative groups such as the Heritage Foundation have long called for.
Aside from suggesting the proposal may be nothing more than an election ploy (a not unreasonable assumption, although the same could be said of just about any policy advanced by the administration between now and next November), Bartlett also wonders if it may be indicative of a commitment by President Obama to “discredited industrial policies” (i.e., a heavy-handed command and control model that was ultimately rejected by the Japanese more than a decade ago) and “a subordination of trade policy to political interests.” With regard to the latter concern, Bartlett contends that folding the Office of the Trade Representative into the Commerce Department is a “dreadful idea” that should be troubling to free traders.
I know from personal experience at the Treasury Department that in internal administration discussions of trade policy the various agencies are expected to play certain roles. Commerce always defends whatever business wants because that’s its job. The Council of Economic Advisers always takes the principled free trade position, and so on.
At the end, the Office of the Trade Representative is the “honest broker,” a role that would be impossible for it to play as part of the parochial Commerce Department. The Office of the Trade Representative’s ability to fulfill this function is now assured by its position as part of the executive office of the president. This allows it to take the broad view of what is in the best interest of the country as a whole and bargain with our trading partners in good faith.
To effectively abolish the Office of the Trade Representative is a dreadful idea. It is a small agency; there are no efficiency gains to be realized by making it another bureau within Commerce. And no matter what promises are made to guarantee its independence, placing the Office of the Trade Representative within Commerce will inevitably politicize the office.
Considering the infamous partisan political gridlock that presently exists in Washington, it seems highly improbable Obama’s reorganization proposal will amount to anything in the immediate future. Even despite that, swift action on something this complex would be quite astounding. As Bartlett notes, President Reagan asked Congress for a similar federal trade agency shake-up almost 20 years ago!
Of course, times have changed radically since then. In the face of challenging economic circumstances and fierce global competition, where the creaking apparatus of government is widely regarded as a hindrance to growth and badly in need of significant overhaul, efforts to modernize and efficiently streamline its workings for the benefit of traders are unavoidable. Whether that comes in the form proposed by the current administration or that of another, it should be hoped the role of those agencies and various aspects of the government that do actually work effectively at present (the Office of the Trade Representative in Bartlett’s example) aren’t unintentionally diminished in the process of reform.
David Jacobson, the U.S. Ambassador to Canada sat down recently with TVO’s Steve Paikin to discuss his role as Ambassador and the new border agreement between Canada and the United States. Source: Television Ontario
David Jacobson, the U.S. Ambassador to Canada sat down recently with TVO’s Steve Paikin to discuss his role as Ambassador and the new border agreement between Canada and the United States.
Source: Television Ontario
Jason Myers, President and CEO of Canadian Manufacturers & Exporters When Prime Minister Stephen Harper and President Barack Obama announced their shared vision for perimeter security and economic competitiveness in February, many people immediately wrote off the exercise as another in a long line of attempts to “fix” border irritants between our countries. This was [...]
Jason Myers, President and CEO of Canadian Manufacturers & Exporters
When Prime Minister Stephen Harper and President Barack Obama announced their shared vision for perimeter security and economic competitiveness in February, many people immediately wrote off the exercise as another in a long line of attempts to “fix” border irritants between our countries.
This was the fifth similar effort in the past dozen years, starting with the shared border declarations in the late 1990s, the 32-point action plan in 2001, the Security and Prosperity Partnership of 2005 and the North American Competitiveness Council of 2007. To be blunt, these efforts produced some results, but didn’t succeed in solving the real challenges businesses on both sides of the border face in their day-to-day operations.
The costs of bad regulatory and antiquated border policies are too significant to ignore. They cost Canada five per cent of GDP every year – that’s more than $50 billion out of the pockets of consumers. Furthermore, they reduce corporate investment in employees, productive capacity, and innovation.
Why are the costs so extreme? Canadian and US manufacturers don’t simply trade with each other; we build things together. Cars, food products, telecommunications equipment, steel and metal products, are just some of the goods that Canadian and Americans manufacture together and use to compete together in global markets.
That’s the good news.
These component parts however cross our border multiple times before a finished product is ready for retail.
While integration has increased substantially since the signing of 1988 FTA, the regulatory system has not kept up with the business realities. Product regulations and border processes today are often rooted in an economic reality from 50 years ago. Despite integrated manufacturing, many products cannot be designed, tested and built for sale in both countries all as a result of slight differences in regulatory standards.
That’s the bad news.
Over the past decade, Ottawa and Washington have demanded more information about every component of products crossing our border, a demand that is often multiple, repetitive and costly. At the same time, foreign produced goods – our competition both in this marketplace and globally – face no such hurdles. Goods are typically manufactured within a single jurisdiction where finished products are imported into Canada or the US with a single customs compliance and security process, dramatically reducing costs for production and ultimately, the price for consumers.
On February 4, the leaders set out a very ambitious, yet straightforward objective – improve “perimeter” security against third-country threats while accelerating the legitimate flow of people, goods and services between our two countries. Improvements were to be measured through real, bottom-line results for companies and less congestion at our border.
Throughout this process, and based on the feedback from our member companies, we have worked in both capitals to define what we believe is the way forward.
Agility and time are the currency of today’s new normal, and businesses need regulations that allow companies to invest and grow, not whither and die.
We don’t need smart regulation – we need common-sense harmonization that includes a single electronic window to report necessary information; a system where business travellers cross our border with minimum hassle and a system where border agencies put the word “trust” back into trusted trader programs.
Past efforts on our border have simply not been enough. The challenges our members face in continental North America are now greater than ever. Free trade agreements will bring even more competition for our products.
Our members can compete on product quality and reliability, but we cannot compete when archaic rules and misinformed border policies are a competitive disadvantage and stifle the successes of our integration.
It’s time we manufactured our future together. It’s time we move forward and bring the Canada-US partnership into the 21st century. Jobs on both sides of the 49th parallel depend on it. The clock is ticking.
Jayson Myers is the president and CEO of Canadian Manufacturers & Exporters – the country’s largest industry and trade association.
Canada’s new border deal with the United States could lead to fewer missed connections at the airport, more American law-enforcement officials working on Canadian soil, harmonized U.S. standards for prescription drugs, new names for cuts of meat and fewer inspections of food cargo as both governments strive to ensure better information sharing and less red [...]
Canada’s new border deal with the United States could lead to fewer missed connections at the airport, more American law-enforcement officials working on Canadian soil, harmonized U.S. standards for prescription drugs, new names for cuts of meat and fewer inspections of food cargo as both governments strive to ensure better information sharing and less red tape for companies trying to get their goods and people across the largest land border in the world.
The wide-ranging Perimeter Security and Economic Competitiveness Action Plan was described by Prime Minister Stephen Harper Wednesday as the most significant step forward in Canada-U.S. co-operation since the North American Free Trade Agreement.
For cargo from overseas, the U.S and Canadian governments hope to de-clutter the border by screening goods only once — when they first arrive.
Two pilot projects in Prince Rupert and Montreal will be launched in 2012. Shipments coming from overseas will only be screened on arrival and won’t be inspected on subsequent border crossings unless absolutely necessary. If the pilot projects work, single screening will become the new norm.
For businesses, other pilot projects are being developed, such as a pre-inspection of cargo carried on trains, which will begin in September. Another year-long project will involve issuing advance clearance for trucks carrying fresh meat.
The governments will also move to eliminate red tape. For example, an American firm wanting to import fridges currently has to file paperwork with nine government departments, in the future all those applications will be filed through one website.
The trade compliance implications of the new border deal for importers and exporters will doubtless be many and varied as aspects of the sweeping initiative are progressively implemented in future. A number of key features of the 29-point deal — including an accord on regulatory reform — are estimated to still be three to four years away from practical realization.
Related Information:
• Perimeter Security and Economic Competitiveness Action Plan
• Fact sheet from the White House
Separate proposed rules from the State and Commerce departments last week would result in sweeping changes to U.S. export controls on most aircraft and associated parts, components, attachments and accessories. The U.S. Department of State’s Directorate of Defense Trade Controls (State/DDTC) has published a proposal (76 Fed. Reg. 68694) to amend the International Traffic in [...]
Separate proposed rules from the State and Commerce departments last week would result in sweeping changes to U.S. export controls on most aircraft and associated parts, components, attachments and accessories.
The U.S. Department of State’s Directorate of Defense Trade Controls (State/DDTC) has published a proposal (76 Fed. Reg. 68694) to amend the International Traffic in Arms Regulations (ITAR) to revise Category VIII (aircraft and related articles) of the U.S. Munitions List (USML) to describe more precisely the military aircraft and related defense articles warranting control on the USML.
Specific proposed changes include moving similar articles currently controlled in multiple categories into a single category or subcategory (e.g., inertial navigations systems for aircraft formerly controlled under Category VIII(e) will likely be moved to controls either in Category XII or the CCL in future proposed rules and, as noted in proposed Category VIII(b), gas turbine engines for articles controlled in this category will likely be included in proposed Category XIX, which will be the subject of a separate notice).
Other former Category VIII subcategories have been “reserved’” because the Department is proposing to change the jurisdictional status of the items covered therein so that they would become subject to the EAR, most likely under ECCN 9A610 or 9A619. This proposed rule also revises Sec. 121.3 to more clearly define “aircraft” for purposes of the revised USML Category VIII.
The most significant aspect of this more positive, but not yet tiered, proposed USML category is that it does not contain controls on all generic parts, components, accessories, and attachments that are specifically designed or modified for a defense article, regardless of their significance to maintaining a military advantage for the United States. Rather, it contains, with one principal exception, a positive list of specific types of parts, components, accessories, and attachments that continue to warrant control on the USML. The exception pertains to parts, components, accessories, and attachments “specially designed” for the following U.S.-origin aircraft that have low observable features or characteristics: B-1B, B-2, F-15SE, F/A18E/F/G, F-22, F-35 (and variants thereof), F-117, or United States Government technology demonstrators.
All other parts, components, accessories, and attachments “specially designed” for a military aircraft and other articles now subject to USML Category VIII would become subject to the new 600 series controls in Category 9 of the CCL to be published separately by the Department of Commerce. Interested persons have until December 22, 2011, to submit comments on these proposed changes.
Simultaneously with State/DDTC’s publication of its proposed changes to the ITAR, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has published a proposal (76 Fed. Reg. 68675) describing how articles the President determines no longer warrant control under Category VIII (aircraft and related items) of the United States Munitions List (USML) would be controlled under the Commerce Control List (CCL) in new Export Control Classification Numbers (ECCNs) 9A610, 9B610, 9C610, 9D610, and 9E610.
In addition, this proposed rule would control military aircraft and related items now controlled under ECCNs 9A018, 9D018 and 9E018 under new ECCNs 9A610, 9D610 and 9E610. This proposed rule also addresses license exception availability for items controlled by the five new ECCNs that would be created. This proposed rule would also modify aspects of BIS’ July 15, 2011, proposed rule (76 Fed. Reg. 41958) by adding cross references to ECCNs 9A018, 9D018 and 9E018; by adding provisions relating to License Exception Strategic Trade Authorization (STA) eligibility to clarify that its scope extends to the U.S. Government, to any person in the United States, and to the “development” or “production” of items; and by including a general policy of denial for 600 series items for destinations that are subject to a United States arms embargo under the regional stability reasons for control.
Interested persons have until December 22, 2011, to submit comments on these significant changes proposed by the U.S. government.
Beyond the Border initiative mired by complexities in both countries In a paper released yesterday by The School of Public Policy at the University of Calgary, policy advisor and international lawyer Brian Flemming examines Canada-U.S. efforts to create a more porous border between the two countries. He finds that despite the best of intentions on [...]
Beyond the Border initiative mired by complexities in both countries
In a paper released yesterday by The School of Public Policy at the University of Calgary, policy advisor and international lawyer Brian Flemming examines Canada-U.S. efforts to create a more porous border between the two countries. He finds that despite the best of intentions on both sides, real change will prove difficult to achieve.
Flemming examines the many border issues that the Beyond the Border agreement – signed in February 2011 by Prime Minister Stephen Harper and President Barack Obama – is intended to address. These include an integrated Canada-U.S. entry-exit system, harmonization of regulations on Canadian or American products, the protection of citizens’ privacy, and border installations.
While these issues are considered important by political leaders, there are other factors at play. “Overarching all issues and all packages in the Beyond the Border negotiation will be the twin hydras of trust and timing,” Flemming writes.
Citizens of both countries must trust that politicians are serving national interests with any international agreements. Flemming argues that “Trust in the abilities of politicians to solve problems of any kind is at an all-time low in both Canada and the United States.” As an example, the author refers to the current debt problem in the U.S. and the public’s perception that Congress has failed them.
As for timing, President Obama is unlikely to make striking trade and security deals a priority given the run up to the 2012 election, with voters most concerned about his action on the U.S. economy.
Flemming also argues that the results of the U.S. election could make progress on border issues even tougher. “If too many members of Congress with erroneous opinions get elected, no agreements of any kind may be possible,” he writes.
The paper can be downloaded here.
(John Ibbitson — The Globe and Mail) U.S. and Canadian negotiators have successfully concluded talks on a new deal to integrate continental security and erase obstacles to cross-border trade. Negotiators have reached agreement on almost all of the three dozen separate initiatives in the Beyond the Border action plan, said sources who cannot be named [...]
(John Ibbitson — The Globe and Mail)
U.S. and Canadian negotiators have successfully concluded talks on a new deal to integrate continental security and erase obstacles to cross-border trade.
Negotiators have reached agreement on almost all of the three dozen separate initiatives in the Beyond the Border action plan, said sources who cannot be named because they are not authorized to speak publicly on the matter. The few remaining items mostly involve questions of wording and should be settled in time for an announcement in late September.
The most crucial phase then lies ahead, as both the Canadian and U.S. governments try to sell the proposals to their respective publics. A new poll suggests that in Canada, at least, that could be harder than it would have been a few years ago, although with a majority government, the Conservatives can pass any legislation that may be required, barring massive public opposition.
The stakes are high on the initiative, which Prime Minister Stephen Harper and U.S. President Barack Obama announced together in Washington last winter. Mr. Harper has told individuals in private meetings that he sees the Beyond the Border talks as the most ambitious advance in Canada-U.S. relations since the Free Trade Agreement of 1988.
Without an agreement, the non-tariff barriers that have increasingly obstructed the border since the Sept. 11 terrorist attacks could remain in place and worsen. Read more here.
(American Enterprise Institute for Public Policy Research – Claude Barfield) The title is harsh, but the goal is benign-save, or at least extract, the world trading system from the Doha Development Round of trade negotiations that has now dragged on for a decade without success. To achieve this end, the round should formally be ended. [...]
(American Enterprise Institute for Public Policy Research – Claude Barfield)
The title is harsh, but the goal is benign-save, or at least extract, the world trading system from the Doha Development Round of trade negotiations that has now dragged on for a decade without success. To achieve this end, the round should formally be ended.
Over the past several years, the possibility of a grand bargain that would produce major trade liberalization in manufacturing, services and agriculture has steadily diminished and has now disappeared. As this piece is written during the “dog days” of August, trade ministers and bureaucrats from World Trade Organization member states are engaged in a final desperate drive to come up with a face-saving “mini-package,” or Early Harvest, of trade concessions to present at a climactic meeting of WTO ministers in December. The goal of the package is to salvage benefits for the world’s poorest countries such as tariff-free, quota-free trade with developed countries, drastic reduction in subsidies for cotton, exemptions from major services trade liberalization, and trade facilitation programs such as logistical aid to move goods from farm and factory to air-and seaports.
The prospects for even a small package are dismal. The United States, through its ambassador to the WTO, Michael Punke, stated in July that a “so-called Early Harvest package is not happening and is not going to happen.” Punke urged WTO negotiators not to spend more time on this effort, but rather concentrate in the lead up to the December Ministerial on issues that look beyond the current Doha stalemate and forward to the future of the WTO itself. Punke is halfway to a sensible position-but unfortunately, he and the Obama administration stopped short of biting the bullet by calling for a definitive end to the Doha Round. Read more here.
(The Toronto Star – Les Whittington) Ontario’s economic health and millions of jobs will be on the table this fall when Prime Minister Stephen Harper sits down with U.S. President Barack Obama to talk about unclogging the United States-Canada border. Many see the expected high-level talks as the last, best hope to protect the world’s [...]
(The Toronto Star – Les Whittington)
Ontario’s economic health and millions of jobs will be on the table this fall when Prime Minister Stephen Harper sits down with U.S. President Barack Obama to talk about unclogging the United States-Canada border.
Many see the expected high-level talks as the last, best hope to protect the world’s biggest two-way trading relationship from being slowly strangled by security measures that have been multiplying ever since the terrorist incidents on Sept. 11, 2001.
The Harper-Obama meeting will follow up on a session at the White House in February in which the two leaders agreed to open negotiations on improving joint security and trade operations. The far-reaching pact — entitled Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness — conjured up radical changes in Canada-U.S. relations.
It envisioned a security perimeter encircling Canada and the U.S. anchored by jointly managed border facilities, shared intelligence and an integrated Canada-U.S. entry-exit system. And it called for measures to speed the flow of legitimate travellers and commercial goods.
While information from the secret bilateral negotiations has been limited, observers on the Canadian side of the border are not anticipating the kind of major, historic breakthrough in Canada-U.S. dealings envisioned in the marching orders negotiators were handed in February. Read more here.
(World Trade Interactive) President Obama signed into law Aug. 12 legislation that makes a number of revisions to the Consumer Product Safety Improvement Act of 2008 to address concerns about the regulatory burdens it has created for manufacturers and retailers of consumer goods, particularly children’s products. The changes should lower compliance costs and ease strict [...]
(World Trade Interactive)
President Obama signed into law Aug. 12 legislation that makes a number of revisions to the Consumer Product Safety Improvement Act of 2008 to address concerns about the regulatory burdens it has created for manufacturers and retailers of consumer goods, particularly children’s products. The changes should lower compliance costs and ease strict requirements that had proven hugely demanding, even forcing some companies to go out of business.
The new law’s most immediate impact will be on the 100 parts per million limit on lead in children’s products scheduled to take effect Aug. 14. This lower limit will now be applied only to goods manufactured on or after Aug. 14, thus allowing the sale of goods compliant with the previous 300 ppm limit that are already in the supply chain or on retail shelves as of that date. Any future reductions in this limit will be similarly prospective. Read more here.
(Dan Vergano — USA Today) President Obama called for the federal government to increase support for manufacturing and robotics technology on Friday in a speech in Pittsburgh. “If we want a robust growing economy, we need a robust manufacturing sector,” Obama said, announcing the “Advanced Manufacturing Partnership.” The partnership between universities, firms and the federal [...]
(Dan Vergano — USA Today)
President Obama called for the federal government to increase support for manufacturing and robotics technology on Friday in a speech in Pittsburgh.
“If we want a robust growing economy, we need a robust manufacturing sector,” Obama said, announcing the “Advanced Manufacturing Partnership.” The partnership between universities, firms and the federal government, would open engineering labs to small firms, support manufacturing process research and develop “precompetitive” technologies such as “nanomanufacturing flexible electronics, information technology-enabled manufacturing and advanced materials.”
“We cannot remain the world’s engine of innovation without manufacturing activity,” the President’s Council of Advisors on Science and Technology told Obama in a report released with the speech. “The Nation’s historic leadership in manufacturing, however, is at risk.” Read more here.
